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CIRCULAR

Guiding procedures for import and export of goods of domestic and foreign contractors defined in the Government's Decree no. 111/2006/ND-CP of september 29, 2006, detailing the Bidding Law and the selection of construction contractors under the Construction Law

Pursuant to the Government's Decree No. 29/2004/ND-CP of January 16, 2004, defining the functions, tasks, powers and organizational structure of the Ministry of Trade;

Pursuant to the Government's Decree No. 111/2006/ND-CP of September 29, 2006, detailing the Bidding Law and the selection of construction contractors under the Construction Law;

Pursuant to the Government's Decree No. 12/ 2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries;

The Ministry of Trade guides procedures for export and import of goods of domestic and foreign contractors as follows:

I. SUBJECT AND SCOPE OF REGULATION

This Circular guides procedures for export and import of goods of domestic and foreign contractors (collectively referred to as contractors) that win bids for state budget-funded projects under the provisions of the Bidding Law.

Construction activities of foreign contractors winning bids in Vietnam are not governed by this Circular, but comply with the provisions of Clause 4, Article 7 of the Construction Law and the Government's Decree No. 87/2004/QD-TTg of May 19, 2004, on operation regulation of foreign contractors in the construction domain in Vietnam.

II. IMPORT-EXPORT PROCEDURES

1. Imported goods:

Except for goods on the list of goods banned from import according to the provisions of Circular No. 04/2006/TT-BTM of April 6, 2006, guiding a number of contents of the Government's Decree No. 12/2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international purchase and sale of goods and goods purchase, sale, processing and transit agency activities with foreign parties, contractors may import or temporarily import for re-export goods for executing state budget-funded investment projects. For goods subject to import permits or specialized management, contractors may only import or temporarily import for re-export those goods after the Ministry of Trade or the specialized management ministry has granted them import permits or guided them to carry out import procedures.

2. Import contract:

An import contract is a goods sale and purchase contract signed between a domestic contractor and a foreign trader or between a bid-winning foreign contractor and a Vietnamese enterprise in accordance with a competent authority's decision approving construction contractor-selection results. The contents of an import contract must comply with the law on contracts.

3. Import procedures:

3.1. Import of machinery and equipment:

Bid-winning contractors may directly fill in procedures for the import of machinery and equipment at border-gate customs offices with the following documents:

- The decision approving the investment project;

- The decision approving the bidding results;

- The import contract;

- The notarized copies of the business registration certificate and tax identification number of the contractor (for domestic contractors);

- The notarized copy of the business registration certificate or a paper of equivalent validity (for foreign contractors).

3.2. Lease and borrowing of imported machinery and equipment:

In the process of executing investment projects, contractors may lease or borrow machinery and equipment in service of the construction of works. After completing projects, contractors shall re-export leased and borrowed machinery and equipment in return to foreign traders. In case of liquidating those machinery and equipment in Vietnam, contractors shall fulfill their financial obligations in accordance with law. Liquidated machinery and equipment must comply with the law on imported second-hand machinery and equipment. Liquidation and import procedures shall be carried out directly at border-gate customs offices.

3.3. Temporary import for re-export, temporary export for re-import

In the process of executing investment projects, contractors may:

- Temporarily import machinery, equipment and means of transport for the construction of works; and re-export them after completion of those works.

- Temporarily export parts, details, accessories, etc., of imported machinery and equipment chain to foreign countries for repair or replacement before re-importing them.

Procedures for temporary import for re-export and temporary export for re-import shall be carried out directly at border-gate customs offices.

III. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in "CONG BAO."

2. This Circular replaces the Trade Ministry's Circular No. 04 TM/DT of July 30, 1993, guiding the implementation of the Regulation on management of the import of machinery and equipment with budget capital sources, issued together with the Prime Minister's Decision No. 91/TTg of November 13, 1992. From the effective date of this Circular, all types of permits that have been granted by the Ministry of Trade regarding the import of machinery and equipment with state capital sources are annulled.

3. During the course of implementation of this Circular, any arising problems should be reported by contractors and concerned agencies to the Ministry of Trade for appropriate amendment and supplementation.